Rumor: Wal-Mart to sell 4GB iPhone for $99

A new rumor presents the possibility that discount chain Wal-Mart may carry a special run 4GB iPhone 3G as part of its agreement to begin selling the touchscreen handsets later this month.

Apple's existing iPhone 3G product line includes 8GB and 16GB models, which sell for $199 and $299, respectively, with two year contracts. A 4GB first-generation iPhone was briefly available last year for $399 but was discontinued only a couple of months later when the company restructured its offerings to focus on a reduced 8GB model in an effort to boost sales.

In a report Thursday, the BoyGeniusReport cites unfamiliar sources who say Apple may be prepared to introduce a 4GB iPhone 3G that it would allow Wal-Mart to sell for $99 alongside two-year contracts. The blog is unsure of its sources, however, and asks that readers "Just dont hate us if this doesnt happen, we warned you."

In total, approximately 2,500 Wal-Mart locations and 69 Sams Club locations that use the discount chain's ordering system are expected to carry the device. Training for Wal-Mart employees is believed to have already begun.

For their part, Wall Street analysts have recently issued reports supporting the theory of deeper-discounted iPhones in the near future.

Last month JRPG Research analyst Jamie Townsend said he expects Apple will be one of several smartphone vendors that will ramp up competition in the smartphone market by discounting their excess inventories immediately following the Christmas holiday.

Separately, Needham & Co. analyst Charles Wolf argued in an October report that Apple's strong real-world revenues and its high iPhone gross margins give the company substantial headroom to market a $99 iPhone that could lead to huge strides forward in market share.

- Apple never makes special editions of anything. The closest thing they have is a (RED) iPod they sell exclusively at Apple.
- They discontinued the original 4 GB iPhone because no one wanted it. Even then, Jobs said no one wanted a phone that small. And now, compared with the rest of the iPhone/iPod lineup, 4GB stacks up even worse.
- While I agree $99 is a great price point, I sincerely doubt Apple's going to hand special pricing to a single retailer, let alone Walmart of all people.

- Apple never makes special editions of anything. The closest thing they have is a (RED) iPod they sell exclusively at Apple.
- They discontinued the original 4 GB iPhone because no one wanted it. Even then, Jobs said no one wanted a phone that small. And now, compared with the rest of the iPhone/iPod lineup, 4GB stacks up even worse.
- While I agree $99 is a great price point, I sincerely doubt Apple's going to hand special pricing to a single retailer, let alone Walmart of all people.

The RAZR started its life as a premium product. The original packaging was a work of art and the RAZR v1.0 was very nicely put together.

As time went on, the price was cut again and again. The packaging was streamlined and several metal parts were replaced with plastic parts in the name of cost saving.

Each price cut meant that a larger demongraphic of people could afford the phone. What started life as a premium geek phone ended up being one of the biggest selling phones of all time. The change was remarkable.

Unfortunately Motorola couldn't repeat or sustain this success. Judging by the iPod, Apple will do a lot better.

The RAZR started its life as a premium product. The original packaging was a work of art and the RAZR v1.0 was very nicely put together.

As time went on, the price was cut again and again. The packaging was streamlined and several metal parts were replaced with plastic parts in the name of cost saving.

Each price cut meant that a larger demongraphic of people could afford the phone. What started life as a premium geek phone ended up being one of the biggest selling phones of all time. The change was remarkable.

Unfortunately Motorola couldn't repeat or sustain this success. Judging by the iPod, Apple will do a lot better.

Price cutting will harm it rather than help it- like the Razr. The cutting edge geeks will no longer want the gadget that the masses have. It sounds like you're contradicting yourself.

- Apple never makes special editions of anything. The closest thing they have is a (RED) iPod they sell exclusively at Apple.
- They discontinued the original 4 GB iPhone because no one wanted it. Even then, Jobs said no one wanted a phone that small. And now, compared with the rest of the iPhone/iPod lineup, 4GB stacks up even worse.
- While I agree $99 is a great price point, I sincerely doubt Apple's going to hand special pricing to a single retailer, let alone Walmart of all people.

This is never going to happen.

I agree with you on this. My reasons are similar to yours. If anything they would release a 32GB model and the 8GB would become $99 (available at all retail locations), they will never release a 4GB again. Also, walmart just doesn't seem to fit the apple style. Best Buy is at least a tech type store.